US President Trump Threatens India with Tariff Increases Over Russian Oil Purchases

US President Donald Trump made a sharp statement regarding India, threatening to impose stricter trade tariffs if the country does not reduce its purchases of oil from the Russian Federation. This move by the American leader was a response to the failures in trade negotiations between Washington and New Delhi.

This is reported by AgroReview

Market Reaction and US Politicians’ Stance

Following the president’s announcement, the Indian stock market immediately reacted with a decline. The IT sector index fell by approximately 2.5%, reaching a monthly low. Investors are concerned that further escalation of trade relations between the US and India could delay the long-awaited trade agreement.

Republican Senator Lindsey Graham positively assessed the impact of American sanctions and increased tariffs on reducing the import of Russian oil into India. According to the politician, he supports the possibility of imposing tariffs of up to 500% on countries that continue to purchase oil from the Russian Federation.

“If you are buying cheap Russian oil, you are supporting Putin’s war machine. We are trying to make it difficult for the president to make this choice through tariffs. Trump’s actions have been the main reason India is now buying significantly less Russian oil,” Graham said.

Trade Between the US and India: Current Dynamics

Despite the tightening of trade barriers, exports from India to the US increased in November, although shipments from May to November 2025 decreased by more than 20%. Experts in international trade warn that New Delhi’s cautious policy may weaken India’s position on the global stage.

Thus, the geopolitical tension surrounding the purchase of Russian oil and changes in trade policy is exacerbating relations between the two largest democracies in the world, affecting both markets and global economic trends.